4 Reasons to Do an Annual Mortgage Checkup in 2023

Mortgage rates have been on the uptick in 2023, and home values are still rising, although not as quickly as they did in the past few years. This means that it’s more important than ever to make sure your mortgage is still working for you. Here are four reasons why you should do an annual mortgage checkup in 2023:

1. You may be able to refinance to a lower rate. Even though mortgage rates are higher than they were a few years ago, they are still lower than they were in the early 2000s. If you have had your mortgage for a while, you may be able to refinance to a lower rate and save money on your monthly payments.

According to a study by Bankrate, homeowners who refinance their mortgages can save an average of $1,800 per year.

2. You may be able to shorten your loan term. If you can afford to make higher monthly payments, you may want to consider shortening your loan term. This will save you money on interest in the long run. For example, if you have a 30-year mortgage and you refinance to a 15-year mortgage, you will save about $30,000 in interest over the life of the loan.

Source: Freddie Mac

3. You may be able to get rid of mortgage insurance. If your down payment was less than 20%, you may be required to pay mortgage insurance. If your home value has increased since you bought it, you may be able to get rid of mortgage insurance. This will save you money each month.

4. You may be able to take advantage of new mortgage products. There are always new mortgage products being developed. If you haven’t checked your mortgage in a while, you may be missing out on a better deal. For example, there are now mortgages that offer lower interest rates if you agree to make biweekly payments.

If you’re thinking about doing an annual mortgage checkup, here are a few things to keep in mind:

• Get quotes from multiple lenders. This will help you compare rates and fees.
• Make sure you understand the terms of the loan. Read the fine print before you sign anything.
• Ask about any hidden fees. Some lenders may charge fees for things like appraisals or title insurance.

Here are some additional tips for homeowners who are considering doing an annual mortgage checkup in 2023:

• Consider your financial situation. Have your income and expenses changed since you took out your mortgage? If so, you may want to adjust your loan terms to better fit your current financial situation.
• Think about your long-term goals. Do you plan to stay in your home for the long term? If so, you may want to consider a 15-year mortgage instead of a 30-year mortgage. This will save you money on interest in the long run.
• Talk to your lender. Your lender can help you assess your options and find the best mortgage for your needs.

An annual mortgage checkup is a great way to ensure that you’re getting the most out of your mortgage. By taking the time to review your loan terms and compare rates, you can save money and secure a mortgage that meets your needs.

So don’t wait, contact and Embrace Home Loans^® specialist and schedule your checkup today.